EXTRA SHAREHOLDERS MEETING

Press Release, Stockholm, Sweden, May 22, 2007 – Diamyd Medical AB
(www.omxgroup.com ticker: DIAM B; www.otcqx.com ticker DMYDY)

Today at the extra shareholder meeting it was decided to retrieve a purchase option program and replace it with an employee option program.

The Company shall issue an employee option program free of charge with a validity of maximum three (3) years. The options shall be non-transferable and entitle the holder to subscribe at a share value of 110 percent of the average share value on the Nordic Stock Exchange during five (5) days before the allotment. The conversion of the options should be conditioned by the employment or assignment at the time for vesting. Concerning employees in the USA the conditions shall be according to the regulations for the state where issued.

To secure the employee option program it was decided to issue 250,000 warrants. Every warrant is entitled to a subscription of one (1) share of series B with validity until December 31, 2010. The Company shall retain warrants to cover the costs and taxes that the Company will be liable for at execution of the warrants. At full execution of all warrants the dilution is calculated to approximately 2.5 percent.